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Layer 1 Tokens Plummet as Crypto Market Dips

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Several Layer 1 tokens have seen significant losses today as Bitcoin retraces. 

Layer 1s Experience Pullback 

After a month of meteoric gains and new all-time highs, Layer 1 tokens appear to be correcting.

Some of the biggest Layer 1 blockchains have plummeted over the past 24 hours as the wider crypto market continues to trend lower.

Layer 1 chart
Chart showing SOL (blue), FTM (orange), AVAX (cyan), and LUNA (yellow). Source: TradingView

One of the biggest gainers over the past month, Fantom, has also seen the most violent pullback. The token registered a new all-time high of $1.92 last week but has since retraced over 33% to $1.25. While the FTM token has recovered slightly, it is still down more than 16% in the last 24 hours.

Solana has also been hit hard. Like Fantom, peak euphoria drove up the SOL token’s price to an all-time high of $213.47 last week, but it’s since experienced a sharp pullback. Solana is currently down 12% today, trading at $153.77.

Avalanche (AVAX) and Terra (LUNA) have fared better due to bullish news driving up prices over the weekend but have still registered double-digit losses. Both tokens are down over 13% respectively but are trading higher than last week when Fantom and Solana made new all-time highs.

With no major bearish news for Layer 1s, over-exuberance in the market and Bitcoin trending lower are likely to explain the drop. It is a well-established phenomenon that when Bitcoin falls, other tokens are hit harder, and today seems like no exception (Ethereum, the second-largest cryptocurrency by market cap that often follows Bitcoin in price action, has also dipped today). The world’s largest cryptocurrency is down 3.25% over the last 24 hours, trading at around $44,600 at the time of writing.

Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and several other cryptocurrencies. 

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